Hire in UAE compliantly. Navigate a dual employment system where Emirati nationals trigger 12.5% GPSSA pension contributions and a new AED 6,000 minimum, while expatriates carry no tax deductions but accumulate end-of-service gratuity that creates real long-term liability.
Capital
Abu Dhabi
Language
Arabic
Average Salary
AED 16,000
Payroll Cycle
Monthly
Employer Cost
12.5-15%
Paid Leave
30 days
Public Holidays
12-13 days
Tax Rates
0%
Hiring guides covering regulations, contributions and costs when you hire in UAE. Updated for 2026.
The minimum wage in UAE does not exist as a universal figure. From 1 January 2026, Emirati nationals in the private sector must earn at least AED 6,000 per month under Emiratisation policy, up from AED 5,000. For expatriate workers, who make up roughly 90% of the private sector workforce, there is no statutory minimum wage in UAE at all. This guide covers the full picture: the new Emirati minimum, expatriate salary benchmarks, GPSSA pension contributions, end-of-service gratuity, the Wage Protection System, working hours, and what it means for companies hiring through an EOR.
Read ArticleThinking about switching EOR providers? Before you do, read this. Most payroll errors, support issues, and pricing frustrations can be fixed without a full migration. But when your provider is consistently late on payroll, missing tax filings, or relying on third-party partners with no accountability, staying is the more expensive choice. This is the guide that EOR providers do not write: how the co-termination and rehire process actually works, what happens to severance accruals in countries like Italy and Brazil, the data migration steps that cause 90% of post-switch payroll failures, and the country-specific risks from Germany's social security re-registration to preserving your employee's 30% ruling in the Netherlands. Includes a 15-point migration checklist.
Read ArticleMost EOR providers promise onboarding in 24 to 48 hours. The reality depends on the country, the role, and whether your employee needs a work permit. This guide breaks down the EOR onboarding process step by step, from initial scoping to first payroll, with realistic timelines for 10+ regions, a clear breakdown of who is responsible for what (you vs. the EOR), the documents your employee needs to provide, and the delays that catch companies off guard.
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The UAE’s dual employment system means an EOR must handle two fundamentally different cost structures in one payroll: GPSSA pension registration and contributions for Emirati nationals, and end-of-service gratuity accrual for expatriates. Add mandatory health insurance, WPS compliance and Emiratisation quotas, and the complexity exceeds most Gulf markets.
Our assessment of EOR providers in UAE evaluates WPS compliance, GPSSA accuracy under both the 1999 and 2023 pension laws, gratuity provisioning and visa sponsorship capability.
When you hire in UAE, all employment contracts are now limited-term (max 3 years, renewable) under Federal Decree-Law No. 33 of 2021. The 30-day annual leave entitlement is among the most generous in the Gulf.
| Key Employment Facts | |
| Minimum Wage (Emiratis) | AED 6,000/month (from January 2026) |
| Minimum Wage (Expatriates) | No statutory minimum |
| Probation Period | Up to 6 months |
| Standard Working Hours | 8 hours/day, 48 hours/week (6 hours during Ramadan) |
| Paid Annual Leave | 30 calendar days (after 1 year of service) |
| Notice Period | 30-90 days (per contract, minimum 30 days by law) |
| 13th Salary | Not statutory |
| Sick Leave | 90 days per year (15 full pay, 30 half pay, 45 unpaid; after probation) |
| Maternity Leave | 60 days (45 full pay + 15 half pay) |
| Paternity / Parental Leave | 5 working days paid (either parent, within 6 months of birth) |
Good to Know: The UAE shifted to a Monday-Friday work week for the federal government in January 2022. Most private sector companies have followed, though some retain a Sunday-Thursday pattern. Working hours are reduced by 2 hours per day during Ramadan for all employees, including non-Muslims. All contracts must now be limited-term (maximum 3 years) under the 2021 Labour Law. Unlimited contracts were phased out by February 2023. Paid sick leave is only available after probation is completed (up to 6 months). During probation, employees have no entitlement to paid sick leave. The 5-day parental leave applies to both mothers and fathers and can be taken consecutively or intermittently.
When you hire in UAE, there is no personal income tax, but employer costs vary significantly depending on whether you are hiring an Emirati national or an expatriate. The dual system means running two cost models in one payroll.
| Employer Contributions (2026) | ||
| Contribution | Emirati Employees | Expatriate Employees |
| GPSSA Pension | 12.5% of pensionable salary | N/A |
| Pensionable salary cap | AED 50,000 (1999 law) / AED 70,000 (2023 law) | N/A |
| End-of-service gratuity accrual | N/A | ~5.83% years 1-5 / ~8.33% years 5+ |
| Gratuity cap | N/A | 2 years’ total salary |
| Mandatory health insurance | ~AED 2,500-7,000/year | ~AED 2,500-7,000/year |
| Visa and work permit (initial) | N/A | ~AED 5,000-10,000 |
| Total Employer Cost | ~15-18% + insurance | ~8-12% + visa + insurance |
| Employee Taxes (2026) | |
| Tax / Contribution | Employee Rate |
| Personal Income Tax | 0% |
| GPSSA (Emirati, 1999 law) | 5% of pensionable salary |
| GPSSA (Emirati, 2023 law) | 11% of pensionable salary |
| ILOE insurance | AED 5-10/month |
| Total (Expatriates) | ~0% + AED 5-10 ILOE |
Good to Know: The UAE looks cheap on paper: zero income tax, no universal social security for expats. In practice, total employer cost for an expatriate earning AED 20,000/month basic is roughly AED 20,000 salary + AED 1,167/month gratuity accrual + AED 400/month health insurance + amortized visa costs of ~AED 300/month = approximately AED 21,867, or about 1.09x gross. For an Emirati earning the same amount, add 12.5% GPSSA (AED 2,500) instead of gratuity, plus the same insurance = approximately AED 22,900, or about 1.15x gross. The real surprise comes at termination: a 10-year expatriate employee’s gratuity bill lands as a lump sum. Companies that do not provision monthly get caught. The Employsome minimum wage UAE article has full calculations and comparisons.
The UAE observes 13 public holidays across 7 occasions. Islamic holidays are subject to official moon sighting and dates may shift. Non-Eid holidays can be transferred to adjacent weekdays to create long weekends.
| Date | Holiday |
| January 1 | New Year’s Day |
| March 19-22 | Eid al-Fitr (confirmed, 4 days) |
| May 26-28 | Arafat Day + Eid al-Adha (approximate, 3 days) |
| June 17 | Islamic New Year / 1 Muharram (approximate, may be moved) |
| August 26 | Prophet’s Birthday / Mawlid (approximate, may be moved) |
| December 1 | Commemoration Day |
| December 2-3 | UAE National Day (2 days) |
Good to Know: The UAE Cabinet Resolution No. 27 of 2024 allows non-Eid holidays to be transferred to the start or end of the week to create long weekends. This means Islamic New Year and Prophet’s Birthday may be officially moved from their calendar date. Eid holidays are not transferable. Working on a public holiday requires employee consent and pays 150% of regular wage, or the employee can take a substitute day off. All holiday dates are confirmed by official announcement closer to the date, and Eid dates can shift by 1-2 days based on crescent moon sighting.
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